- Is staying in your location really necessary?
- Do you have the budget?
- Does the floor plan need changing if I relocate?
- How much temporary disruption to my lifestyle can I handle?
- Will renovations increase your home’s value?
- What’s your long-term plan for the home?
- How does moving affect property taxes?
- What effect will this have on my mortgage?
Once you’ve answered these questions, you may be leaning more toward one option over the other. If you’re still unsure, here are some pros and cons to both choices.
Relocation Benefits
- Fresh start: You have the opportunity to begin new! The chance to meet new people, and move away from something you don’t like. It may be the opportunity to change your everyday scenery.
- Extra money: Perhaps you want to move, but don’t want to sell. You can use the house as a source of income by renting it out.
- Renting: Maybe now is the time to consider renting? See our other article relating to the benefits of buying or renting a home.
- Personal gain: Maybe the house you’re leaving is too large or too small now. Relocating gives you the option to find the house that suits your needs now.
- Moving: When you move, clutter and useless items can be discarded.
Relocation Disadvantages
- Taxes: Generally, you don’t pay capital gains tax if you sell the home you have previously lived for more than a year. However, if within this period, or if its not your primary residence, you will be up for some taxes if you sell the property. Additionally, you can’t claim income tax deductions for costs associated with buying or selling your home. Most states charge stamp duty when you buy a property, including a home.
- Moving: When you relocate houses, it is known to be a very stressful activity. Something that may not be needed at this time in your life. There are costs to loading everything into a truck; whether it’s for moving across the street or town. Moving causes disruption in our lives until we develop a new routine.
- Selling: If you decide to sell your home, the process could take months, leaving you with more expenses. Money can be “tight” if you’re stuck in this position.
Renovation Benefits
- New look: Remodelling allows you to recreate an old space into something new, by giving it new life.
- Cost efficiency: If you could consider taking on one room at a time, there is no large upfront cost. You can update what you need so that it fits within your budget. You don’t have to renovate everything, just what you want. There’s also the chance to take on some of your renovations in a DIY fashion.
- Personal touch: Your individual needs are met when you renovate. Whereas buying a new home may have a few features you want, but not all the features.
- Familiarity: You already have a comfort level for the house and how everything operates within.
Renovation Disadvantages
- Key issues: If your home needs a complete overhaul, wouldn’t it just be easy to buy something already built with most of your needs?
- Do the numbers stack up: Is the investment worth it after you crunch the numbers, particularly when you are looking at renovating the whole house?
- Money difficulties: If you don’t have the cash, remodeling can require a homeowner loan, which generally is loaned at a higher rate than a regular home loan. You would need some equity or security. It may be difficult to get approved.
- Permits: Depending on what you’re changing in the house, you may have to get building permits particularly if some structural changes are needed.
- Construction: Remodelling means
Closing Summary
When deciding whether to stay or go, there are a number of factors to consider. These include your budget, your needs, and your long-term plans for the home. If you decide to stay, you may want to consider renovating your home. This can be a cost-effective way to update your home and make it more comfortable and stylish. However, it is important to be aware of the potential costs and disruptions involved in renovations. If you decide to move, you will need to consider the costs of moving and selling your home. You will also need to find a new home that meets your needs and budget. Ultimately, the decision of whether to stay or go is a personal one. There is no right or wrong answer, and the best decision for you will depend on your individual circumstances.
Here are some additional tips for making your decision:
- Talk to your family and friends about your decision. They may be able to offer you valuable insights and advice.
- Do your research. Read articles and talk to experts to learn more about the pros and cons of staying or going.
- Make a list of your priorities. What is most important to you in a home?
- Get a financial advisor. They can help you understand the financial implications of your decision.
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